Qatar Banks’ Assets Reach QR2.0tn in May 2025; Liquid Assets to Total Assets Ratio “Strong” at 30%: QNBFS

Qatar banking sector’s total assets remained largely flat month-on-month at QR2.07tn in May 2025, even as liquid assets to total assets ratio was seen "strong", according to QNBFS report.

The country's banking sector loan book was marginally down by 0.5% month-on-month or m-o-m (+2.3% in 2025), while deposits declined by 0.9% m-o-m (+0.6% in 2025) in May 2025. With deposits and loans moving in lockstep during May 2025, the LDR (loan-to-deposit) remained at 133% vs April 2025, QNBFS said in a report.

Public sector deposits were down 0.7% m-o-m (+1.6% in 2025) in May 2025. The government segment (representing about 34% of public sector deposits) moved up 0.8% m-o-m (+0.8% in 2025). However, the government institutions’ (about 54% of public sector deposits) declined by 1.4% m-o-m (+3.6% in 2025), while the semi-government institutions’ segment (about 12% of public sector deposits) also fell 1.7% m-o-m (-4.3% in 2025) in May 2025.

Non-resident deposits receded by 1.5% m-o-m (-2.6% in 2025) in May 2025. Non-resident deposits as a percentage of total deposits moved down to 18.9% as of May 2025 compared to 19.5% as at year-end 2024.

Private sector deposits moved lower by 0.7% m-o-m (+1.3% in 2025) in May 2025. Within the private sector front, companies and institutions’ deposits declined 2% m-o-m (-2.9% in 2025). However, the consumer segment was flat m-o-m (+4.5% in 2025).

The overall loan book was down by 0.5% in May 2025, pulled lower mainly by public sector loans.

Total public sector loans were down 2.8% m-o-m (+3.2% in 2025) in May 2025. The government segment (representing about 30% of public sector loans) was the main driver for the public sector drop with a decline by 9.1% m-o-m (+6.9% in 2025), while the government institutions segment (about 66% of total public sector loans) was flat m-o-m (+2.5% in 2025). However, the semi-government institutions’ segment was up by 1.4% m-o-m (-10.4% in 2025) in May 2025.

Total private sector loans moved up 0.6% m-o-m (+2.2% in 2025) in May 2025. Real estate and general trade were the main contributors for the private sector loans increase in May 2025.

Real estate (constituting about 21% to private sector loans) went up 1% m-o-m (+2.6% in 2025), while general trade (22% to private sector loans) gained 0.9% m-o-m (+3.4% in 2025), with consumption and others (about 20% to private sector loans) moved up by 0.9%m-o-m (+0.8% in 2025) and services (32% to private sector loans) flat MoM (+1.3% in 2025) in May 2025.

Overseas loans were lower by 1.3% m-o-m (-1.2% in 2025) in May 2025.

The banking sector's loan provisions to gross loans were at 4% m-o-m in May 2025 compared to 3.9% as of year year-end 2024. Loan provisions have increased 5.1% vs. year-end 2024 as they have been provisioning for Stage 2 and Stage 3 loans mainly emanating from contracting and real estate Sectors. On a positive note, Stage 3 loans have remained "stable".

Qatar banking sector's liquid assets to total assets stood at 30% in both May and April, which "remains in a strong position", QNBFS said.